Correlation Between IShares Core and Xtrackers
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By analyzing existing cross correlation between iShares Core MSCI and Xtrackers II Global, you can compare the effects of market volatilities on IShares Core and Xtrackers and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in IShares Core with a short position of Xtrackers. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Xtrackers.
Diversification Opportunities for IShares Core and Xtrackers
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Xtrackers is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core MSCI and Xtrackers II Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers II Global and IShares Core is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on iShares Core MSCI are associated (or correlated) with Xtrackers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers II Global has no effect on the direction of IShares Core i.e., IShares Core and Xtrackers go up and down completely randomly.
Pair Corralation between IShares Core and Xtrackers
Assuming the 90 days trading horizon iShares Core MSCI is expected to under-perform the Xtrackers. In addition to that, IShares Core is 3.31 times more volatile than Xtrackers II Global. It trades about -0.03 of its total potential returns per unit of risk. Xtrackers II Global is currently generating about 0.01 per unit of volatility. If you would invest 21,724 in Xtrackers II Global on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Xtrackers II Global or generate 0.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
iShares Core MSCI vs. Xtrackers II Global
Performance |
| Timeline |
| iShares Core MSCI |
| Xtrackers II Global |
IShares Core and Xtrackers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Xtrackers
The main advantage of trading using opposite IShares Core and Xtrackers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Xtrackers can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xtrackers will offset losses from the drop in Xtrackers' long position.| IShares Core vs. iShares Govt Bond | IShares Core vs. iShares Global AAA AA | IShares Core vs. iShares Smart City | IShares Core vs. iShares Broad High |
| Xtrackers vs. Xtrackers Nikkei 225 | Xtrackers vs. iShares VII PLC | Xtrackers vs. NMI Holdings | Xtrackers vs. SIVERS SEMICONDUCTORS AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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